The Effect of Amil’s Islamic Characteristics on the Quality of Financial Reporting of Zakat Management Organizations (Zmo): Good Governance as Intervening Variable

Abstract

The objective of this research is to analyze the effect of Amil's Islamic Characteristics on Quality of Financial Reporting and Good Governance as an Intervening Variable in Zakat Management Organizations (ZMO). The research used the Structural Equation Modeling-Partial Least Square (SEM-PLS) method with SmartPLS software to analyze data from 204 samples of commissioners and administrators of Zakat Management Organization. The results show that the character of trustworthiness, professionalism, and good governance had a positive and significant effect on the quality of Financial Reporting. In contrast, Islamic religiosity has no impact on the quality of financial reporting. The results also show that Islamic religiosity, trustworthiness, and professionalism had a positive and significant effect on good governance. Good governance played a role in mediating the influence of trustworthiness on the quality of Financial Reporting. The research findings provide managerial implications for ZMO and the government to utilize Islamic religiosity and character of trustworthiness as qualitative standards in Amil recruitment. Furthermore, it allows them to create and set Amil’s professional competency standards, including the fields of accounting and management, and provide Amil professional certification as well as establish Amil Professional Associations.

Analytic Network Process and Tawhidi Strong Relationship in Managing Business of Sharia Commercial Bank

“…• Key Partners Critical (leading working partners) refer to relationships with third parties or the primary partners that are crucial to the smooth operation of the business model. • Key Activities The primary activities that a company or business entity must carry out in order for the business model to function properly are referred to as key activities (main operational activities carried out) [16]. • Key Resources An organization's or company's primary resources-also known as its "essential assets"-are the resources or assets that are absolutely necessary for the operation of the business.…”